Five metro areas run a huge risk of a crash of a housing market in 2025. It is no surprise that three are in Florida, but two are in a Sun Belt -State.
A study based on January figures mentions Winter Haven, Tampa and West Palm Beach in the top five of the American markets that are most likely to fall the house price in 2025.
Phoenix, AZ is number two on the list and Tucson, AZ on four. All have more than 70 percent chance to experience a decrease, according to the new Corelogic study.
The decline of the Florida housing market is powered by a strong decrease in demand, in combination with an increasing number of inhabitants who want to leave the state.
Migration of other states has been considerably delayed since the pandemic, while rising house prices and high mortgage interest rates make it more difficult for buyers to enter the market.
Moreover, the rising housing owners' association (HOA) costs and rising costs for real estate insurance – are fed by an increase in natural disasters – not only to deter the buyers, but they also encourage the exodus.
All five metro lines have already seen the recent price decrease. “Further price delay is ahead,” said Corelogic Chief Economist Selma Hepp.
“While the cold winter of this year and large natural disasters play a role in damping demand, the fall of consumer reasons suggests that potential home buyers are wary of the economic prospects in the short term and future inflation.”
Tampa, Florida, with a high risk of a housing market crash this year says one report
The historic district in the center of Winter Haven, which this year is at risk of a home crash
Corelogic Chief Economist Selma Hepp
Many houses in Florida have been on the market without going a contract, forcing sellers the prices are forced to sell their home.
Tampa, for example, was a popular Pandemie Boomtown, but had a decrease of 1.6 percent in sales between October 2024 and January 2025.
For Winter Haven, who also saw a peak at buyers in the Pandemie, there was a decrease of 1.2 percent in the housing sale from October 2024 to January 2025.
West Palm Beach saw a turnover dip of 1.2 percent between October 2024 and January 2025.
Those areas became desirable for people because the weather and the ability to work remotely people pulled there.
Corelogic economists predict that price growth will continue to slow down in Florida, but a silver lining is that lower mortgage interest could encourage potential buyers to buy a house.
“Nevertheless, with the Spring Conduct for the US, the recent improvements in the mortgage interest can help to invite home buyers to the market again,” says Hepp.
West Palm in particular can be hope for West Palm, the former 'wrong side of the tracks' area fills with luxury developments, high-end restaurants and large business investments that are fed by an intake of financial and technology companies.
West Palm Beach has made the list of a high risk of a housing market crash this year
Downtown Tucson, Arizona, mentioned because they have a high risk of a housing market accident
Phoenix, AZ is number two on the list for areas that are confronted with price drops on houses in 2025
The combination of economic growth, lifestyle appeal and investment activity can be sufficient to stimulate the sale of at home.
Elsewhere in Florida, the housing market, the housing market continues to refuel.
A wave of houses was on the market for longer than average in December 2024, and that same month, typical houses throughout the country spent 70 days on the market, nine days longer than the previous year.
That made it the slowest December in five years.
Florida cities with a lot of inventory that are on the market for more than 90 days are New Smyrna Beach, Palm Coast, Panama City and Gainesville.
In the meantime, another report of today emphasized how the housing market is increasingly divided into different parts of America.
Two houses in different parts of the country were mentioned earlier this year for almost $ 1 million earlier this year.
The modest house in Ranch style in Wyckoff, New Jersey, has received no fewer than 25 offers and is already under contract for $ 200,000 above the original asking price.
In the meantime, a colossus with six bedrooms in Miami with a garage with three cars and a swimming pool still has no bites, so that the sellers have lowered the price.
